Energy XXI Gulf Coast (EGC) Inactive 10-Q9 Aug 182018 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 03, 2018
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Energy XXI Gulf Coast, Inc.
Entity Central Index Key	1,404,973
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,396,563

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 97,900	$ 151,729
Accounts receivable
Oil and natural gas sales	55,413	55,598
Joint interest billings, net	4,004	6,336
Other	19,920	15,726
Prepaid expenses and other current assets	11,873	21,602
Restricted cash	6,432	6,392
Total Current Assets	195,542	257,383
Property and Equipment
Oil and natural gas properties, net - full cost method of accounting, including $192.3 million and $200.2 million of unevaluated properties not being amortized at June 30, 2018 and December 31, 2017, respectively	773,153	764,922
Other property and equipment, net	8,269	10,120
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment	781,422	775,042
Other Assets
Restricted cash	25,814	25,712
Other assets	29,468	18,845
Total Other Assets	55,282	44,557
Total Assets	1,032,246	1,076,982
Current Liabilities
Accounts payable	79,154	85,122
Accrued liabilities	52,111	45,494
Asset retirement obligations	55,952	51,398
Derivative financial instruments	36,793	32,567
Current maturities of long-term debt	17	21
Total Current Liabilities	224,027	214,602
Long-term debt, less current maturities	58,413	73,952
Asset retirement obligations	625,496	613,453
Derivative financial instruments	6,305
Other liabilities	14,932	10,783
Total Liabilities	929,173	912,790
Commitments and Contingencies (Note 13)
Stockholders' Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized and no shares outstanding at June 30, 2018 and December 31, 2017
Common stock, $0.01 par value, 100,000,000 shares authorized and 33,396,563 and 33,254,963 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	334	333
Additional paid-in capital	916,525	911,144
Accumulated deficit	(813,786)	(747,285)
Total Stockholders' Equity	103,073	164,192
Total Liabilities and Stockholders' Equity	$ 1,032,246	$ 1,076,982

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Oil and natural gas properties, net - full cost method of accounting, unevaluated properties not being amortized	$ 192.3	$ 200.2
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	33,396,563	33,254,963
Common stock, shares outstanding	33,396,563	33,254,963

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Gain (loss) on derivative financial instruments	$ (26,045)	$ 9,412	$ (38,879)	$ 13,110
Total Revenues	116,739	144,019	238,910	302,105
Costs and Expenses
Lease operating	79,296	83,655	161,318	160,922
Production taxes	371	482	1,577	721
Gathering and transportation	3,119	2,678	7,175	13,900
Pipeline facility fee	10,494	10,494	20,988	20,988
Depreciation, depletion and amortization	27,555	38,685	54,966	80,581
Accretion of asset retirement obligations	11,197	9,984	22,315	23,065
Impairment of oil and natural gas properties				40,774
General and administrative expense	15,568	20,716	30,700	42,320
Reorganization items	113		349	2,244
Total Costs and Expenses	147,713	166,694	299,388	385,515
Operating Loss	(30,974)	(22,675)	(60,478)	(83,410)
Other Income (Expense)
Other income, net	191	80	334	102
Interest expense	(3,252)	(3,642)	(6,946)	(7,476)
Total Other Expense, net	(3,061)	(3,562)	(6,612)	(7,374)
Loss Before Income Taxes	(34,035)	(26,237)	(67,090)	(90,784)
Net Loss	$ (34,035)	$ (26,237)	$ (67,090)	$ (90,784)
Net Loss per Share
Basic and Diluted (in dollars per share)	$ (1.02)	$ (0.79)	$ (2.01)	$ (2.73)
Weighted Average Number of Common Shares Outstanding
Basic and Diluted (in shares)	33,427	33,237	33,367	33,234
Oil sales
Revenues
Revenues	$ 133,180	$ 118,484	$ 256,968	$ 252,277
Natural gas liquids sales
Revenues
Revenues	1,076	2,370	2,419	4,597
Natural gas sales
Revenues
Revenues	6,261	$ 13,753	14,643	$ 32,121
Other revenue
Revenues
Revenues	$ 2,267		$ 3,759

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From Operating Activities
Net loss	$ (67,090)	$ (90,784)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization	54,966	80,581
Impairment of oil and natural gas properties		40,774
Change in fair value of derivative financial instruments	10,531	(10,470)
Accretion of asset retirement obligations	22,315	23,065
Amortization of debt issuance costs	11	6
Deferred rent	4,169	4,031
Provision for loss on accounts receivable		300
Stock-based compensation	5,617	3,722
Changes in operating assets and liabilities
Accounts receivable	(1,677)	27,404
Prepaid expenses and other assets	(1,208)	11,134
Settlement of asset retirement obligations	(34,717)	(27,491)
Accounts payable, accrued liabilities and other	853	(50,738)
Net Cash Provided by (Used in) Operating Activities	(6,230)	11,534
Cash Flows from Investing Activities
Capital expenditures	(31,954)	(24,496)
Insurance payments received		41
Proceeds from the sale of other property and equipment	288	1,279
Net Cash Used in Investing Activities	(31,666)	(23,176)
Cash Flows from Financing Activities
Payments on long-term debt	(15,556)	(728)
Other	(235)	(61)
Net Cash Used in Financing Activities	(15,791)	(789)
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(53,687)	(12,431)
Cash, Cash Equivalents and Restricted Cash, beginning of period	183,833	223,288
Cash, Cash Equivalents and Restricted Cash, end of period	$ 130,146	$ 210,857

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
Organization and Nature of Operations	Jun. 30, 2018
Organization and Nature of Operations
Organization and Nature of Operations	Note 1 — Organization and Nature of Operations Energy XXI Gulf Coast, Inc. (“EGC” or the “Company”) was formed in December 2016 after emerging from a voluntary reorganization under chapter 11 proceedings as the restructured successor of Energy XXI Ltd (“EXXI Ltd” or the “Predecessor”). The Company is headquartered in Houston, Texas, and engages in the development, exploitation, and operation of oil and natural gas properties primarily offshore in the GoM Shelf, which is an area in less than 1,000 feet of water, and also onshore in Louisiana and Texas. EGC owns and operates nine of the largest GoM Shelf oil fields ranked by total cumulative oil production to date and utilizes various techniques to increase the recovery factor and thus increase the total oil recovered.

Recent Events

Recent Events	6 Months Ended
Recent Events	Jun. 30, 2018
Recent Events
Recent Events	Note 2 — Recent Events On June 18, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with MLCJR LLC (“Cox”), a Texas limited liability company and an affiliate of Cox Oil LLC, and YHIMONE, Inc., a Delaware corporation and a direct wholly-owned subsidiary of Cox (“Merger Sub”). Upon the terms and conditions set forth in the Merger Agreement, at the consummation of the transactions contemplated by the Merger Agreement, Merger Sub will be merged with and into EGC (the “Merger”), and EGC will survive the Merger as the surviving corporation and an indirect wholly-owned subsidiary of Cox. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each issued and outstanding share of EGC common stock, par value $0.01 per share (“Common Stock”), will be converted into the right to receive $9.10 in cash without interest (the “Merger Consideration”). Pursuant to the Merger Agreement, immediately prior to the Effective Time, the vesting of each outstanding EGC restricted stock unit (each, an “RSU”) will accelerate (if not already vested), with any performance conditions deemed achieved at target, and be cancelled and converted into the right to receive the Merger Consideration, multiplied by the number of shares of Common Stock subject to that RSU. The exercise price for each outstanding stock option is greater than the Merger Consideration. As a result, at the Effective Time, each stock option to purchase shares of Common Stock will be cancelled for no consideration. In accordance with the warrant agreement under which the Company’s 2,119,889 outstanding warrants were issued, the warrants will no longer represent the right to acquire shares of Common Stock at the Effective Time. Instead, at that time, each warrant will become exercisable for $9.10 in cash, but the warrant holder would be required to pay the warrant’s cash exercise price of $43.66 per share in order to receive $9.10. Therefore, the Merger Agreement provides that, at the Effective Time, each outstanding warrant will be cancelled for no consideration. The completion of the Merger is subject to satisfaction or waiver of certain closing conditions, including: (i) approval of the Merger Agreement by EGC’s stockholders, (ii) there being no law or injunction prohibiting consummation of the Merger; (iii) subject to specified materiality standards, the accuracy of the representations and warranties of the other party; (iv) compliance by the other party in all material respects with its covenants; and (v) the absence of a material adverse effect on the other party. The completion of the Merger is not conditioned on receipt of financing by Cox. EGC and Cox have made customary representations and warranties in the Merger Agreement. The Merger Agreement also contains customary covenants and agreements whereby EGC has agreed to (i) operate its business in the ordinary course; (ii) use its commercially reasonable efforts to maintain and preserve its present business organization, retain its officers and key employees, and preserve its relationships with its customers and suppliers; and (iii) subject to certain exceptions, not take certain actions relating to its dividends, capital stock or alternative business combinations, among other things, during the period between the execution of the Merger Agreement and the Effective Time. EGC and Cox have each agreed to use commercially reasonable efforts to cause the Merger to be completed. The Merger Agreement contains certain termination rights for both EGC and Cox and further provides that, upon termination of the Merger Agreement, under certain circumstances, EGC may be required to pay Cox a termination fee equal to $8 million and, in certain other circumstances, EGC may be required to reimburse Cox for its documented out-of-pocket expenses up to $2 million. As stated in the Merger Proxy Statement, EGC will hold a special meeting of its stockholders on September 6, 2018 at 9 a.m. (Houston time). At that special meeting, EGC stockholders will be asked to vote on the adoption of the Merger Agreement, which requires the affirmative vote of the holders of two-thirds of the issued and outstanding shares of Common Stock entitled to vote at the EGC special meeting. The record date for the special meeting is August 3, 2018. Therefore, in order to be entitled to notice of, and to vote at, the special meeting or any adjournment or postponement of the special meeting, an individual or entity must be the record holder of shares of Common Stock at the close of business on August 3, 2018. The Merger is expected to close in the third quarter of 2018. However, EGC cannot provide any assurance the combination will be completed on the terms or timeline currently contemplated, or at all. The above is a summary of the material terms of the Merger Agreement and is qualified in its entirety by the terms and conditions of the Merger Agreement, which was filed as an exhibit to the Company’s current report on Form 8-K filed on June 18, 2018. Shortly prior to entering into the Merger Agreement, the Company terminated its previously-disclosed non-binding term sheet with Orinoco Natural Resources, LLC and certain of its affiliates, which provided for the disposition of certain non-core assets, a cash payment, execution of a ten-year second lien note, issuance of common equity, execution of a ten-year master services agreement and a commitment to anchor a potential future financing plan. The termination fee for the term sheet was $1.0 million and was paid subsequent to June 30, 2018.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Summary of Significant Accounting Policies and Recent Accounting Pronouncements	Note 3 – Summary of Significant Accounting Policies and Recent Accounting Pronouncements Principles of Consolidation and Reporting. The accompanying consolidated financial statements on June 30, 2018 include the accounts of EGC and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). All intercompany accounts and transactions are eliminated in consolidation. EGC’s interests in oil and natural gas exploration and production ventures and partnerships are proportionately consolidated. The consolidated financial statements for the prior period include certain reclassifications to conform to the current presentation. Those reclassifications did not have any impact on the previously reported consolidated result of operations or cash flows. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates of proved reserves are key components of the Company’s depletion rate for its proved oil and natural gas properties and the full cost ceiling test limitation. Other items subject to estimates and assumptions include fair value estimates used in fresh start accounting; accounting for acquisitions and dispositions; carrying amounts of property, plant and equipment; asset retirement obligations; deferred income taxes; valuation of derivative financial instruments; among others. Accordingly, the Company’s accounting estimates require the exercise of judgment by management in preparing such estimates. While the Company believes that the estimates and assumptions used in preparation of our consolidated financial statements are appropriate, actual results could differ from those estimates, and any such differences may be material. Interim Financial Statements. The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal and recurring nature considered necessary for a fair presentation have been included in the accompanying consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that will be realized for the entire fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2017 Annual Report. Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑09, Revenue from Contracts with Customers (“ASU 2014‑09”), as a new Accounting Standards Codification (ASC) Topic, ASC 606. ASU 2014‑09 is effective for the Company beginning in the first quarter of 2018. In May 2016, the FASB issued ASU 2016-11, which rescinds certain SEC guidance in the related ASC, including guidance related to the use of the “entitlements” method of revenue recognition used by the Company. The Company adopted ASC 606 effective January 1, 2018, which replaces previous revenue recognition requirements under FASB ASC Topic 605 – Revenue Recognition (“ASC 605”). The standard was adopted using the modified retrospective approach which requires the Company to recognize in retained earnings at the date of adoption the cumulative effect of the application of ASC 606 to all existing revenue contracts which were not substantially complete as of January 1, 2018. T he Company has elected the contract modification practical expedient which allows the Company to reflect the aggregate effect of all modifications prior to the date of adoption when applying ASC 606. Although the adoption of ASC 606 did not have an impact on the Company’s net loss or cash flows, it did result in the reclassification of certain fees received under pipeline gathering and transportation and pipeline tariff agreements that were previously included in oil sales to other revenue i n the consolidated statements of operations. The Company has determined that its contracts for the sale of crude oil, unprocessed natural gas and NGLs contain monthly performance obligations to deliver product at locations specified in the contract. Control is transferred at the delivery location, at which point the performance obligation has been satisfied and revenue is recognized. Fees included in the contract that are incurred prior to control transfer are classified as lease operating expense and fees incurred after control transfers are included as a reduction to the transaction price. The transaction price at which revenue is recognized consists entirely of variable consideration based on quoted market prices less various fees and the quantity of volumes delivered. The Company receives payment for product sales from one to three months after delivery. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in accounts receivable, oil and natural gas sales in the consolidated balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received, however, differences have been and are insignificant. The Company has elected to utilize the practical expedient in ASC 606 that states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under our contracts, each monthly delivery of product represents a separate performance obligation, therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company previously utilized the entitlements method to account for natural gas imbalances, which is no longer applicable under ASC 606. The impact to the financial statements resulting from this change in accounting for natural gas imbalances was not significant. In February 2016, the FASB issued ASU No. 2016‑02, Leases ( “ ASU 2016‑02”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB amended the FASB Accounting Standards Codification and created Topic 842, Leases . The guidance in this ASU supersedes Topic 840, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In the normal course of business, the Company enters into lease agreements to support operations. The Company is evaluating the provisions of ASU 2016‑02 to determine the quantitative effects it will have on its consolidated financial statements and related disclosures. The Company believes the adoption and implementation of this ASU will have a material impact on its balance sheet resulting from an increase in both assets and liabilities relating to its leasing activities. In June 2016, the FASB issued ASU No. 2016‑13, Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016‑13”). ASU 2016‑13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The Company has not yet determined the effect of this standard on its consolidated financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016‑15”). ASU 2016‑15 provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The Company’s adoption of ASU 2016‑15 on January 1, 2018 using the retrospective transition method had no effect on its consolidated financial position, results of operations or cash flows other than presentation. In November 2016, the FASB issued ASU No. 2016‑18 , Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016‑18). ASU 2016‑18 requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The Company’s adoption of ASU 2016‑18 on January 1, 2018 had no effect on its consolidated financial position, results of operations or cash flows other than presentation.

Property and Equipment

Property and Equipment	6 Months Ended
Property and Equipment	Jun. 30, 2018
Property and Equipment
Property and Equipment	Note 4 – Property and Equipment Property and equipment consists of the following ( in thousands ): As of June 30, As of December 31, 2018 2017 Oil and natural gas properties - full cost method of accounting Proved properties $ 1,372,463 $ 1,307,009 Less: accumulated depreciation, depletion, amortization and impairment (791,585) (742,286) Proved properties, net 580,878 564,723 Unevaluated properties 192,275 200,199 Oil and natural gas properties, net 773,153 764,922 Other property and equipment 13,936 13,780 Less: accumulated depreciation and impairment (5,667) (3,660) Other property and equipment, net 8,269 10,120 Total property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 781,422 $ 775,042 Under the full cost method of accounting, at the end of each financial reporting period, the Company compares the present value of estimated future net cash flows from proved reserves (computed using the unweighted arithmetic average of the first-day-of-the-month historical price, net of applicable differentials, for each month within the previous 12‑month period discounted at 10%, plus the lower of cost or fair market value of unevaluated properties and excluding cash flows related to estimated abandonment costs associated with developed properties) to the net capitalized costs of oil and natural gas properties, net of related deferred income taxes. The Company refers to this comparison as a “ceiling test.” If the net capitalized costs of these oil and natural gas properties exceed the estimated discounted future net cash flows, the Company is required to write down the value of oil and natural gas properties to the amount of the discounted cash flows. For the six months ended June 30, 2018, the Company did not incur any impairment to its oil and natural gas properties. For the three months ended June 30, 2018, the Company did not record an impairment to oil and natural gas properties. For the six months ended June 30, 2017, the Company recorded impairment to oil and natural gas properties of $40.8 million. The impairment to oil and natural gas properties for the six months ended June 30, 2017 was primarily due to the difference in SEC reserves and the related PV-10 value relative to the estimated reserves prepared by its internal reservoir engineers as of December 31, 2016. Costs associated with unevaluated properties are transferred to evaluated properties either (i) ratably over a period of the related field’s life, or (ii) upon determination as to whether there are any proved reserves related to the unevaluated properties or the costs are impaired or capital costs associated with the development of these properties will not be available. For the three months and six months ended June 30, 2018, the costs associated with unevaluated properties decreased by $3.6 million and $7.9 million, respectively. For the three months ended June 30, 2018, the decrease of $2.2 million was attributable to ratable amortization and $1.8 million was transferred to evaluated properties due to impairment, partially offset by an addition of $0.4 million related to exploratory drilling costs. For the six months ended June 30, 2018, the decrease of $ 4.3 million was attributable to ratable amortization and $4.0 million was transferred to evaluated properties due to impairment, partially offset by an addition of $0.4 million related to exploratory drilling costs.

Long-Term Debt

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2018
Long-Term Debt
Long-Term Debt	Note 5 – Long-Term Debt As of June 30, 2018 and December 31, 2017 the Company’s outstanding debt consisted of the following ( in thousands ): As of June 30, 2018 As of December 31, 2017 Exit Facility $ 58,447 $ 73,996 Capital lease obligations 17 21 Total debt 58,464 74,017 Less: debt issue costs 34 44 Less: current maturities 17 21 Total long-term debt $ 58,413 $ 73,952 Exit Facility On December 30, 2016, the Company entered into a secured Exit Facility, which matures on December 30, 2019. The Exit Facility, as amended, is secured by mortgages on at least 90% of the value of it and its subsidiary guarantors’ proved developed producing reserves as well as its total proved reserves. The Exit Facility consists of two facilities: (i) a term loan facility (the “Exit Term Loan”) and (ii) a revolving credit facility (the “Exit Revolving Facility”) for the making of revolving loans and the issuance of letters of credit. The Exit Facility is guaranteed by substantially all of the wholly-owned subsidiaries of the Company, subject to customary exceptions, and is secured by first priority security interests on substantially all assets of each guarantor. Under the Exit Facility, the borrower will not declare or make a restricted payment, or make any deposit for any restricted payment. Restricted payments include declaration or payment of dividends. The Company must make a mandatory prepayment of the revolving loans and, if necessary, cash collateralize the outstanding letters of credit if a reduction in the revolving credit capacity would cause the revolving credit exposure to exceed the revolving credit capacity. On or after the determination of the borrowing base, the Company must also make a mandatory prepayment of the revolving loans and, if necessary, cash collateralize the outstanding letters of credit not in favor of ExxonMobil if a borrowing base deficiency arises. The Exit Facility contains covenants and events of default customary for reserve-based lending facilities. In addition, for each fiscal quarter ending on and after March 31, 2018, the Company must maintain a Current Ratio (as defined in the Exit Facility) of no less than 1.00 to 1.00 and a First Lien Leverage Ratio (as defined in the Exit Facility) of no greater than 4.00 to 1.00 calculated on a trailing four quarter basis. On March 29, 2018, the Company prepaid $10.0 million outstanding under the Exit Term Loan. No payment was made during the quarter ended June 30, 2018. Due to a potential decline in its estimated trailing twelve-month EBITDA calculation for the twelve-month period ending September 30, 2018, the Company may prepay additional amounts of its outstanding Exit Term Loan in order to prevent a breach of the First Lien Leverage Ratio, and such a prepayment could adversely affect its liquidity. Additionally, due to its decreased cash position, the Company may not meet its required Current Ratio (as defined in the Exit Facility). Under those circumstances, the Company would explore several options to remain in compliance with the terms of the Exit Facility, including modifying the timing of its capital expenditures. Furthermore, for each fiscal quarter ending on and after March 31, 2018, if the Asset Coverage Ratio (as defined in the Exit Facility) is less than 1.50 to 1.00, the Company must make a mandatory prepayment of the Exit Term Loan in an amount equal to the lesser of (i) 7.5% of the aggregate outstanding principal amount of the Exit Term Loan on December 30, 2016 and (ii) the then outstanding principal amount of the Exit Term Loan. Based on the results of the quarter ended March 31, 2018, the Company made a mandatory prepayment of $5.5 million during the quarter ended June 30, 2018. Based on the results of the quarter ended June 30, 2018, the Company will not be required to make a prepayment during the quarter ended September 30, 2018. Based upon the Company’s current expectations with respect to its capital resources, capital expenditures, results from operations and commodity prices, the Company believes that it is possible that it will be required to make a mandatory prepayment with respect to fiscal quarters subsequent to September 30, 2018. In the event of a mandatory prepayment, any such mandatory prepayment would not, in and of itself, constitute a default under the Exit Facility. As of June 30, 2018, the Company is in compliance with all terms of the Exit Facility. Unused credit capacity under the Exit Revolving Facility will accrue a commitment fee of 0.50% payable quarterly in arrears. Interest on the outstanding amount of the Exit Term Loan, at the Company’s option, will accrue at an interest rate equal to either: (i) the Alternative Base Rate (as defined in the Exit Facility) plus 3.5% per annum or (ii) the one-month LIBO Rate (as defined in the Exit Facility) plus 4.5% per annum. Interest on the Exit Term Loan bearing interest at the Alternative Base Rate will be payable quarterly; interest on the Exit Term Loan bearing interest at the LIBO Rate will be payable monthly. Interest on the outstanding amount of revolving loans borrowed under the Exit Revolving Facility, at the Company’s option, will accrue at an interest rate equal to either (i) the Alternative Base Rate plus 3.5% per annum or (ii) the one, three or six month LIBO Rate plus 4.5% per annum. Interest on revolving loans that bear interest at the Alternative Base Rate will be payable quarterly; interest on revolving loans that bear interest at the LIBO Rate will be payable at the end of each interest period or, if an interest period exceeds three months, at the end of every three months. The stated amount of each letter of credit issued under the Exit Revolving Facility accrues fees at the rate of 4.5% per annum. There is an issuance fee of 0.25% per annum charged on the stated amount of each letter of credit issued after December 30, 2016. The Company currently has $12.5 million available for borrowing, under specific circumstances, as revolving loans subject to a maximum for all such loans of (i) $25 million prior to the date the borrowing base is initially determined and (ii) the borrowing base, on and after the date the borrowing base is initially determined. The borrowing base will be initially determined at a date elected by the Company, and will be redetermined semi-annually thereafter. Currently, the Company has not elected a date for the initial borrowing base determination. As of June 30, 2018, the Company had approximately $58.4 million in borrowings and $20 1.5 million in letters of credit issued under the Exit Facility.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
Asset Retirement Obligations	Jun. 30, 2018
Asset Retirement Obligations
Asset Retirement Obligations	Note 6 – Asset Retirement Obligations The following table describes the changes to the Company’s asset retirement obligations ( in thousands ): Balance as of December 31, 2017 $ 664,851 Liabilities incurred 8,761 Liabilities settled (34,717) Revisions 20,238 Accretion expense 22,315 Total balance as of June 30, 2018 681,448 Less: current portion 55,952 Long-term portion as of June 30, 2018 $ 625,496

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Jun. 30, 2018
Derivative Financial Instruments
Derivative Financial Instruments	Note 7 – Derivative Financial Instruments The Company enters into derivative transactions to reduce exposure to fluctuations in the price of crude oil and natural gas with multiple investment-grade rated counterparties, primarily financial institutions, to reduce the concentration of exposure to any individual counterparty. The Company has historically used various instruments, including financially settled crude oil and natural gas puts, put spreads, swaps, costless collars and three-way collars in its derivative portfolio. With a costless collar, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is below the floor price of the collar, and the Company was required to make a payment to the counterparty if the settlement price for any settlement period is above the cap price for the collar. In a fixed price swap contract, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is below the swap fixed price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is above the swap fixed price. Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying consolidated balance sheets. Any gains or losses resulting from changes in fair value of our outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included in (loss) gain on derivative financial instruments as a component of revenues in the accompanying consolidated statements of operations. Most of the Company’s crude oil production is sold at Heavy Louisiana Sweet. The Company has historically included contracts indexed to NYMEX-WTI, ICE Brent futures and Argus-LLS futures in its derivative portfolio to closely align and manage its exposure to the associated price risk. The energy markets have historically been very volatile, and there can be no assurances that crude oil and natural gas prices will not be subject to wide fluctuations in the future. While the use of derivative arrangements helps to limit the downside risk of adverse price movements, they may also limit future gains from favorable price movements. As of June 30, 2018, the Company had the following open crude oil derivative positions: Weighted Average Type of Volumes Contract Price Remaining Contract Term Contract Index (MBbls) Swaps July 2018 - December 2018 Swaps NYMEX-WTI $ 50.68 January 2019 - December 2019 Swaps ICE Brent $ 61.00 In April 2018, with no cash outlay, we unwound 3,000 BPD of our WTI swaps for the period from April 1, 2018 to June 30, 2018 and replaced the unwound swaps with 3,000 BPD ICE Brent swaps with an average swap price of $61.00 per Bbl for the period January 2019 to December 2019. Additionally, we added 3,000 BPD ICE Brent costless collars with a floor price of $60.00 and a ceiling price of $82.00 for the period April 13, 2018 to June 30, 2018. The fair values of derivative instruments in the Company’s consolidated balance sheets were as follows ( in thousands ): Asset Derivative Instruments Liability Derivative Instruments As of June 30, 2018 As of December 31, 2017 As of June 30, 2018 As of December 31, 2017 Balance Fair Value Balance Fair Value Balance Fair Value Balance Fair Value Derivative financial instruments Current $ - Current $ - Current $ 36,793 Current $ 32,567 Non- - Non- - Non- 6,305 Non- - Total gross derivative financial instruments subject to enforceable master netting agreement - - 43,098 32,567 Derivative financial instruments Current - Current - Current - Current - Non- - Non- - Non- - Non- - Gross amounts offset in Balance Sheets - - - - Net amounts presented in Balance Sheets Current - Current - Current 36,793 Current 32,567 Non- - Non- - Non- 6,305 Non- - $ - $ - $ 43,098 $ 32,567 The following table presents information about the components of the (loss) gain on derivative financial instruments ( in thousands ). Three Months Ended June 30, Six Months Ended June 30, (Loss) gain on derivative financial instruments 2018 2017 2018 2017 Cash settlements $ (15,301) $ 2,351 $ (28,348) $ 2,640 Non-cash gain in fair value (10,744) 7,061 (10,531) 10,470 Total (loss) gain on derivative financial instruments $ (26,045) $ 9,412 $ (38,879) $ 13,110 The Company monitors the creditworthiness of its counterparties who are also a part of its bank lending group. However, the Company is not able to predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in our ability to mitigate an increase in counterparty credit risk. Possible actions would be to transfer its position to another counterparty or request a voluntary termination of the derivative contracts resulting in a cash settlement. Should one of its financial counterparties not perform, the Company may not realize the benefit of some of its derivative instruments under lower commodity prices and could incur a loss. As of June 30, 2018, the Company had no collateral deposits with our counterparties.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Taxes
Income Taxes	Note 8 – Income Taxes No cash income taxes were paid during the three months and six months ended June 30, 2018, and, based upon current commodity pricing and planned development activity, no cash income taxes are expected to be paid or owed for the year ending December 31, 2018. The Company has estimated its effective income tax rate for the year to be zero, as the Company is forecasting a pre-tax loss at this time. The Company does not believe that its net deferred tax assets are realizable in the future on a more-likely-than-not basis at this time; as such, during the three months and six months ended June 30, 2018, the Company increased its valuation allowance by $5.9 million and $12.3 million, respectively, to reflect the tax effects of this loss. The $12.3 million valuation allowance increase for the six months ended June 30, 2018, when coupled with the $306.2 million valuation allowance at December 31, 2017, results in a valuation allowance of $318.6 million at June 30, 2018. The Company made no changes during the period to its deferred tax assets or valuation allowance related to the Tax Cuts and Jobs Act of 2017.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2018
Stockholders' Equity
Stockholders' Equity	Note 9 – Stockholders’ Equity Under the Company’s certificate of incorporation, the total number of all shares of capital stock that it is authorized to issue is 110 million shares, consisting of 100 million shares of the Company’s common stock, par value $0.01 per share, and 10 million shares of preferred stock, par value $0.01 per share. During the three months and six months ended June 30, 2018, we issued 128,085 shares and 141,600 shares, respectively, of our common stock upon vesting of RSUs and as of June 30, 2018, we had 33,396,563 shares of common stock, 285,105 stock options and 2,119,889 warrants outstanding.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
Supplemental Cash Flow Information	Jun. 30, 2018
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 10 – Supplemental Cash Flow Information The following table presents supplemental cash flow information ( in thousands ): Six Months Ended June 30, 2018 2017 Cash paid for interest $ 4,626 $ 7,484 The following table presents non-cash investing and financing activities ( in thousands ): Six Months Ended June 30, June 30, June 30, 2018 2017 Changes in capital expenditures and accrued liabilities or accounts payable $ - $ (164) Changes in asset retirement obligations 28,999 (133,039) Changes in other property and equipment - (455) The following table presents the reconciliation of cash, cash equivalents and restricted cash as presented on the consolidated statement of cash flows (in thousands) : As of June 30, December 31, June 30, 2018 2017 2017 Cash and cash equivalents $ 97,900 $ 151,729 $ 178,855 Restricted cash, current 6,432 6,392 6,365 Restricted cash, long term 25,814 25,712 25,637 Total Cash, cash equivalents and restricted cash $ 130,146 $ 183,833 $ 210,857

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
Employee Benefit Plans	Jun. 30, 2018
Employee Benefit Plans
Employee Benefit Plans	Note 11 – Employee Benefit Plans Long Term Incentive Plans On December 30, 2016, the Company adopted the Energy XXI Gulf Coast, Inc. 2016 Long Term Incentive Plan (the “2016 LTIP”), which is a comprehensive equity-based award plan as part of the compensation for the Company’s officers, directors, employees and consultants (the “Service Providers”). The total number of shares of common stock reserved and available for delivery with respect to awards under the 2016 LTIP was 1,859,552 shares (or 5% of the total new equity). Awards under the 2016 LTIP are awarded to the Service Providers selected at the discretion of the compensation committee (the “Committee”) of the board of directors of the Company (the “Board”). However, under the terms of the Energy XXI Ltd’s chapter 11 plan of reorganization, 3% of the 5% total new equity on a fully diluted basis reserved under the 2016 LTIP had to be allocated by the Board no later than 120 days after December 30, 2016. As of April 29, 2017, the 3% of total new equity had been allocated by the Board. In order to retain key employees and attract new employees with the experience and skill sets that fit the Company’s culture and corporate strategy, the Board approved the Energy XXI Gulf Coast, Inc. 2018 Long Term Incentive Plan (the “2018 LTIP”) on April 11, 2018 and the Company’s stockholders approved the 2018 LTIP at the 2018 annual meeting of stockholders held on May 17, 2018. Upon approval, the number of shares of common stock available for awards under the 2018 LTIP were (i) 1,860,000 plus (ii) the number of shares remaining available for award under the 2016 LTIP on the date of the 2018 annual meeting. As of June 30, 2018, there were 1,317,083 shares remaining available for award under the 2018 LTIP. As a result of the adoption and stockholder approval of the 2018 LTIP, no additional equity awards or other long term incentive awards may be made under the 2016 LTIP. However, existing awards that were granted under the 2016 LTIP will continue to be subject to the provisions of the 2016 LTIP. The Compensation Committee generally administers the 2016 LTIP and the 2018 LTIP (together the “Company LTIPs”). The Compensation Committee determines the types of equity based awards (which may include stock option, stock appreciation rights, RSUs, bonus stock awards, performance-based restricted stock units (each a “PBRSU”), other stock based awards or cash awards) and the terms and conditions (including vesting and forfeiture restrictions) of such awards. Under the Company LTIPs, stock options have been and may be issued with an exercise price that is not less than the fair market value of our common stock on the date of grant and expire 10 years from the grant date. Stock options that have been granted to date generally vest ratably over a three-year period. The fair value of each stock option granted is estimated on the date of grant using a Black-Scholes-Merton option valuation model that uses assumptions related to expected term, expected volatility, risk free rate and dividend yield. As of June 30, 2018, there were 285,105 unvested stock options and $ 0.9 million in unrecognized compensation cost related to unvested stock options. The exercise price for each outstanding stock option is greater than the Merger Consideration. As a result, if the Merger is consummated, at the Effective Time, each stock option to purchase shares of Common Stock will be cancelled for no consideration. Under the Company LTIPs, RSUs have been and may be granted as approved by the Committee. To date, the RSUs granted by the Committee have a vesting date up to three years from the date of grant and each RSU represents a right to receive one share of our common stock. During the three months and six months ended June 30, 2018, the Committee granted 475,886 and 1,272,853 RSUs at a weighted average price of $6.92 and $ 6.42 per restricted stock unit, respectively. As of June 30, 2018, there were 1,580,223 unvested RSUs and $1 0.6 million in unrecognized compensation cost related to unvested RSUs. If the Merger is consummated, immediately prior to the Effective Time, the vesting of each outstanding RSU will accelerate (if not already vested), with any performance conditions deemed achieved at target, and be cancelled and converted into the right to receive the Merger Consideration, multiplied by the number of shares of Common Stock subject to that RSU. The RSUs described in this paragraph do not include performance-based restricted stock units, which are described in the section below titled “Performance-Based Restricted Stock Units.” Performance-Based Restricted Stock Units On June 7, 2018, the Committee granted 262,500 PBRSUs to certain executive officers. All of the PBRSUs awarded vest equally over a three-year period, but only if the employee is still employed by the Company at the end of each measurement period. In the event of a change in control during a measurement period, the performance for that period shall be deemed to have been achieved at target and the award shall vest based on the employee’s service through the end of the period. Based on the performance of the Common Stock compared to a peer group, the employee will vest in (i) a maximum award equal to 150% of the target opportunity for maximum performance level or (ii) 0% of the target opportunity for performance below the threshold level. The PBRSUs were issued under the 2018 LTIP. If the Merger is consummated, immediately prior to the Effective Time, the vesting of each outstanding PBRSU will accelerate, with any performance conditions deemed achieved at target, and be cancelled and converted into the right to receive the Merger Consideration, multiplied by the number of shares of Common Stock subject to that PBRSU. As of June 30, 2018, there were 262,500 unvested PBRSUs and $2.3 million in unrecognized compensation cost related to unvested PBRSUs.

Loss per Share

Loss per Share	6 Months Ended
Loss per Share	Jun. 30, 2018
Loss per Share
Loss per Share	Note 12 — Loss per Share Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Except when the effect would be anti-dilutive, the diluted earnings per share calculation includes the impact of RSUs, stock options and other common stock equivalents. The following table sets forth the calculation of basic and diluted loss per share (“EPS”) ( in thousands, except per share data ): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net loss $ (34,035) $ (26,237) $ (67,090) $ (90,784) Weighted average shares outstanding for basic EPS 33,427 33,237 33,367 33,234 Add dilutive securities - - - - Weighted average shares outstanding for diluted EPS 33,427 33,237 33,367 33,234 Loss per share Basic and Diluted $ (1.02) $ (0.79) $ (2.01) $ (2.73) The Company’s RSUs granted to the members of the Board which are vested but not yet issued are treated as outstanding for basic loss per share calculations since these shares are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic EPS using the two-class method. For the three months and six months ended June 30, 2018 and 2017, no net loss was allocated to the participating securities. The following table sets forth the components of common stock equivalents (as calculated under the treasury stock method in accordance with GAAP) that were excluded from the diluted average shares calculation due to their anti-dilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Warrants 11,393,213 1,447,992 12,508,419 1,238,023 Options 1,066,237 204,896 1,201,495 269,817 RSUs 33,584 79,509 310,788 23,584 PBRSUs 25,963 - 17,664 - 12,518,997 1,732,397 14,038,366 1,531,424 The dilutive effect of warrants, options, RSUs and PBRSUs is calculated using the treasury stock method, which assumes that the “proceeds” from the exercise of these instruments are used to purchase common shares at the average market price for the period. Accordingly, these common stock equivalents do not represent the number of shares of Common Stock that would be issued upon exercise or settlement of the applicable warrant, option, RSU or PBRSU. The increase in potentially dilutive shares for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 and the six months ended June 30, 2018 compared to the six months ended June 30, 2017 is due to the decrease in average stock price for the comparative periods. The Company’s average stock price for the three months ended June 30, 2018 and 2017 was $6.85 per share and $25.94 per share, respectively. The Company’s average stock price for the six months ended June 30, 2018 and 2017 was $6.33 per share and $27.56 per share, respectively. The exercise price for EGC’s outstanding warrants is $43.66 per share, and the weighted average exercise price for EGC’s outstanding stock options is $28.90 per share for the six month period ended June 30, 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 13 — Commitments and Contingencies Litigation. The Company is involved in various legal proceedings and claims, which arise in the ordinary course of our business. The Company does not believe the ultimate resolution of any such actions will have a material effect on its consolidated financial position, results of operations or cash flows. Letters of Credit and Performance Bonds. As of June 30, 2018, the Company had approximately $3 28.9 million of performance bonds outstanding and $200.0 million in letters of credit issued to ExxonMobil relating to assets in the Gulf of Mexico. In April 2015, the Predecessor received letters from the BOEM stating that certain of its subsidiaries no longer qualified for waiver of certain supplemental bonding requirements for potential offshore decommissioning, plugging and abandonment liabilities. As of June 30, 2018, approximately $177.2 million of the Company’s performance bonds are lease and/or area bonds issued to the BOEM, to which the BOEM has access to ensure commitment to comply with the terms and conditions of those leases. As of June 30, 2018, the Company also maintained approximately $15 1.7 million in performance bonds issued to third party assignors including certain state regulatory bodies for eventual decommissioning of certain wells and facilities. As of June 30, 2018, the Company had $ 52.3 million in cash collateral provided to surety companies associated with the bonding requirements of the BOEM and third party assignors. To address the supplemental bonding and other financial assurance concerns expressed to the Company by the BOEM in April 2015 and thereafter, the Predecessor submitted a long-term financial assurance plan (the “Long-Term Plan”) to the agency. Further, the Predecessor submitted a proposed plan amendment on June 28, 2016 that would revise the executed Long-Term Plan (the “Proposed Plan Amendment”). The Company continues to work with the BOEM under the Long-Term Plan and the Proposed Plan Amendment. Drilling Rig Commitments. As of June 30, 2018, we have approximately $ 8.4 million committed under three rig contracts for drillwells, rig recompletions and plugging and abandonment activities. The contracts’ terms range from March 17, 2018 through September 12, 2018. Other. The Company maintains restricted escrow funds as required by certain contractual arrangements. As of June 30, 2018, the Company’s restricted cash primarily related to $25.8 million in cash collateral associated with its bonding requirements, $6.1 million in a trust for future plugging, abandonment and other decommissioning costs related to the East Bay field that was sold to Whitney Oil & Gas, LLC and Trimont Energy (NOW), LLC on June 30, 2015 and $0.3 million in cash collateral for an office lease. Funds held in trust will be transferred to the buyers of the Company’s interests in that field. The Company and its oil and natural gas joint interest owners are subject to periodic audits of the joint interest accounts for leases in which the Company participates and/or operates. As a result of these joint interest audits, amounts payable or receivable by the Company for costs incurred or revenue distributed by the operator or by the Company on a lease may be adjusted, resulting in adjustments to its net costs or revenues and related cash flows. When they occur, these adjustments are recorded in the current period, which generally is one or more years after the related cost or revenue was incurred or recognized by the joint account. The Company does not believe any such adjustments will be material.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
Fair Value of Financial Instruments	Jun. 30, 2018
Fair Value of Financial Instruments
Fair Value	Note 14 — Fair Value of Financial Instruments Certain assets and liabilities are measured at fair value on a recurring basis in the consolidated balance sheets. Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of these techniques requires significant judgment and is primarily dependent upon the characteristics of the asset or liability, the principal (or most advantageous) market in which participants would transact for the asset or liability and the quality and availability of inputs. Inputs to valuation techniques are classified as either observable or unobservable within the following hierarchy: · Level 1 – quoted prices in active markets for identical assets or liabilities. · Level 2 – inputs other than quoted prices that are observable for an asset or liability. These include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). · Level 3 – unobservable inputs that reflect our own expectations about the assumptions that market participants would use in measuring the fair value of an asset or liability. For cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities and certain notes payable, the carrying amounts approximate fair value due to the short-term nature or maturity of the instruments. The carrying value of the Exit Facility approximates its fair value because the interest rate is variable and reflective of market rates, which are Level 2 inputs within the fair value hierarchy. The Company’s commodity derivative instruments historically consisted of financially settled crude oil and natural gas puts, swaps, put spreads, costless collars and three way collars. The Company estimated the fair values of these instruments based on published forward commodity price curves, market volatility and contract terms as of the date of the estimate. The discount rate used in the discounted cash flow projections is based on published London Interbank offered rates. The fair values of commodity derivative instruments in an asset position include a measure of counterparty nonperformance risk, and the fair values of commodity derivative instruments in a liability position include a measure of the Company’s nonperformance risk, each based on the current published issuer-weighted corporate default rates. See Note 6 – “Derivative Financial Instruments.” The fair value of the Company’s RSUs equals the market value of the underlying common stock on the date of grant . For its stock options, the Company utilizes the Black-Scholes-Merton model to determine fair value, which incorporates various assumptions as follows: · the expected volatility is based on comparable companies’ asset volatilities ; · the risk-free interest rate is the related United States Treasury yield curve for periods within the expected term of the option at the time of grant; and · the dividend yield on the Company’s common stock is zero. During the six months ended June 30, 2018 the Company did not have any transfers from or to any level within the fair value hierarchy. The following table presents the fair value of its Level 2 financial instruments ( in thousands ): Level 2 As of June 30, 2018 As of December 31, 2017 Assets: Oil and Natural Gas Derivatives $ - $ - Liabilities: Oil and Natural Gas Derivatives $ 43,098 $ 32,567 The following table sets forth the outstanding and estimated fair values of its long-term debt instruments which are classified as Level 2 financial instruments ( in thousands ): As of June 30, 2018 As of December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Exit Facility $ 58,447 $ 58,447 $ 73,996 $ 73,996 $ 58,447 $ 58,447 $ 73,996 $ 73,996

Prepayments and Accrued Liabili

Prepayments and Accrued Liabilities	6 Months Ended
Prepayments and Accrued Liabilities	Jun. 30, 2018
Prepayments and Accrued Liabilities
Prepayments and Accrued Liabilities	Note 15 — Prepayments and Accrued Liabilities Prepayments and other current assets and accrued liabilities consist of the following ( in thousands ): As of June 30, 2018 As of December 31, 2017 Prepaid expenses and other current assets Advances to joint interest partners $ 132 $ 1,381 Insurance 6,645 5,949 Inventory 885 394 Royalty deposit 756 1,021 Other 3,455 12,857 Total prepaid expenses and other current assets $ 11,873 $ 21,602 Accrued liabilities Advances from joint interest partners 253 81 Employee benefits and payroll 4,499 6,791 Interest payable 2,493 185 Accrued hedge payable 5,110 2,491 Undistributed oil and gas proceeds 19,421 20,079 Severance taxes payable 1,375 558 Other 18,960 15,309 Total accrued liabilities $ 52,111 $ 45,494

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2018
Subsequent Events
Subsequent Events	Note 16 — Subsequent Events On August 7, 2018, Anthony Franchi, a purported holder of Common Stock, filed a complaint against EGC and the Board in the U.S District Court for the District of Delaware. The case is captioned Anthony Franchi v Energy XXI Gulf Coast, Inc., et al., Case No. 1:18-cv-01203. The complaint alleges that (1) EGC and the Board violated Section 14(a) of the Exchange Act, and Rule 14a-9 promulgated thereunder, by allegedly failing to disclose material information in the Merger Proxy Statement, and (s) the Board, as alleged control persons of EGC, violated Section 20(a) of the Exchange Act in connection with the filing of the allegedly materially deficient Merger Proxy Statement. Mr. Franchi has asked the court to, among other things, (i) enjoin EGC, the Board, Cox and all other persons from proceeding with or consummating the Merger, (ii) alternatively, if the Merger is consummated, rescind the Merger or award rescissory damages, (iii) direct the Board to file a revised Merger Proxy Statement that does not contain any untrue statements of material fact or that states all material facts required in it or necessary to make the statements contained in Merger Proxy Statement not misleading, (iv) declare that EGC and the Board violated Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, and/or Section 20(a) of the Exchange Act, and (v) award Mr. Franchi attorneys’ and experts’ fees. EGC believes that this complaint is without merit. EGC cannot predict the outcome of or estimate the possible loss or range of loss from this matter.

Summary of Significant Accoun22

Summary of Significant Accounting Policies and Recent Accounting Pronouncement (Policies)	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Principles of Consolidation and Reporting	Principles of Consolidation and Reporting. The accompanying consolidated financial statements on June 30, 2018 include the accounts of EGC and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). All intercompany accounts and transactions are eliminated in consolidation. EGC’s interests in oil and natural gas exploration and production ventures and partnerships are proportionately consolidated. The consolidated financial statements for the prior period include certain reclassifications to conform to the current presentation. Those reclassifications did not have any impact on the previously reported consolidated result of operations or cash flows.
Use of Estimates	Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates of proved reserves are key components of the Company’s depletion rate for its proved oil and natural gas properties and the full cost ceiling test limitation. Other items subject to estimates and assumptions include fair value estimates used in fresh start accounting; accounting for acquisitions and dispositions; carrying amounts of property, plant and equipment; asset retirement obligations; deferred income taxes; valuation of derivative financial instruments; among others. Accordingly, the Company’s accounting estimates require the exercise of judgment by management in preparing such estimates. While the Company believes that the estimates and assumptions used in preparation of our consolidated financial statements are appropriate, actual results could differ from those estimates, and any such differences may be material.
Interim Financial Statements	Interim Financial Statements. The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal and recurring nature considered necessary for a fair presentation have been included in the accompanying consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that will be realized for the entire fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2017 Annual Report.
Recent Accounting Pronouncements	Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑09, Revenue from Contracts with Customers (“ASU 2014‑09”), as a new Accounting Standards Codification (ASC) Topic, ASC 606. ASU 2014‑09 is effective for the Company beginning in the first quarter of 2018. In May 2016, the FASB issued ASU 2016-11, which rescinds certain SEC guidance in the related ASC, including guidance related to the use of the “entitlements” method of revenue recognition used by the Company. The Company adopted ASC 606 effective January 1, 2018, which replaces previous revenue recognition requirements under FASB ASC Topic 605 – Revenue Recognition (“ASC 605”). The standard was adopted using the modified retrospective approach which requires the Company to recognize in retained earnings at the date of adoption the cumulative effect of the application of ASC 606 to all existing revenue contracts which were not substantially complete as of January 1, 2018. T he Company has elected the contract modification practical expedient which allows the Company to reflect the aggregate effect of all modifications prior to the date of adoption when applying ASC 606. Although the adoption of ASC 606 did not have an impact on the Company’s net loss or cash flows, it did result in the reclassification of certain fees received under pipeline gathering and transportation and pipeline tariff agreements that were previously included in oil sales to other revenue i n the consolidated statements of operations. The Company has determined that its contracts for the sale of crude oil, unprocessed natural gas and NGLs contain monthly performance obligations to deliver product at locations specified in the contract. Control is transferred at the delivery location, at which point the performance obligation has been satisfied and revenue is recognized. Fees included in the contract that are incurred prior to control transfer are classified as lease operating expense and fees incurred after control transfers are included as a reduction to the transaction price. The transaction price at which revenue is recognized consists entirely of variable consideration based on quoted market prices less various fees and the quantity of volumes delivered. The Company receives payment for product sales from one to three months after delivery. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in accounts receivable, oil and natural gas sales in the consolidated balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received, however, differences have been and are insignificant. The Company has elected to utilize the practical expedient in ASC 606 that states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under our contracts, each monthly delivery of product represents a separate performance obligation, therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company previously utilized the entitlements method to account for natural gas imbalances, which is no longer applicable under ASC 606. The impact to the financial statements resulting from this change in accounting for natural gas imbalances was not significant. In February 2016, the FASB issued ASU No. 2016‑02, Leases ( “ ASU 2016‑02”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB amended the FASB Accounting Standards Codification and created Topic 842, Leases . The guidance in this ASU supersedes Topic 840, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In the normal course of business, the Company enters into lease agreements to support operations. The Company is evaluating the provisions of ASU 2016‑02 to determine the quantitative effects it will have on its consolidated financial statements and related disclosures. The Company believes the adoption and implementation of this ASU will have a material impact on its balance sheet resulting from an increase in both assets and liabilities relating to its leasing activities. In June 2016, the FASB issued ASU No. 2016‑13, Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016‑13”). ASU 2016‑13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The Company has not yet determined the effect of this standard on its consolidated financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016‑15”). ASU 2016‑15 provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The Company’s adoption of ASU 2016‑15 on January 1, 2018 using the retrospective transition method had no effect on its consolidated financial position, results of operations or cash flows other than presentation. In November 2016, the FASB issued ASU No. 2016‑18 , Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016‑18). ASU 2016‑18 requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The Company’s adoption of ASU 2016‑18 on January 1, 2018 had no effect on its consolidated financial position, results of operations or cash flows other than presentation.

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
Property and Equipment (Tables)	Jun. 30, 2018
Property and Equipment
Schedule of property and equipment	Property and equipment consists of the following ( in thousands ): As of June 30, As of December 31, 2018 2017 Oil and natural gas properties - full cost method of accounting Proved properties $ 1,372,463 $ 1,307,009 Less: accumulated depreciation, depletion, amortization and impairment (791,585) (742,286) Proved properties, net 580,878 564,723 Unevaluated properties 192,275 200,199 Oil and natural gas properties, net 773,153 764,922 Other property and equipment 13,936 13,780 Less: accumulated depreciation and impairment (5,667) (3,660) Other property and equipment, net 8,269 10,120 Total property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 781,422 $ 775,042

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2018
Long-Term Debt
Schedule of long-term debt	As of June 30, 2018 and December 31, 2017 the Company’s outstanding debt consisted of the following ( in thousands ): As of June 30, 2018 As of December 31, 2017 Exit Facility $ 58,447 $ 73,996 Capital lease obligations 17 21 Total debt 58,464 74,017 Less: debt issue costs 34 44 Less: current maturities 17 21 Total long-term debt $ 58,413 $ 73,952

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
Asset Retirement Obligations (Tables)	Jun. 30, 2018
Asset Retirement Obligations
Schedule of changes in asset retirement obligations	The following table describes the changes to the Company’s asset retirement obligations ( in thousands ): Balance as of December 31, 2017 $ 664,851 Liabilities incurred 8,761 Liabilities settled (34,717) Revisions 20,238 Accretion expense 22,315 Total balance as of June 30, 2018 681,448 Less: current portion 55,952 Long-term portion as of June 30, 2018 $ 625,496

Derivative Financial Instrume26

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Jun. 30, 2018
Derivative Financial Instruments
Schedule of derivative positions	As of June 30, 2018, the Company had the following open crude oil derivative positions: Weighted Average Type of Volumes Contract Price Remaining Contract Term Contract Index (MBbls) Swaps July 2018 - December 2018 Swaps NYMEX-WTI $ 50.68 January 2019 - December 2019 Swaps ICE Brent $ 61.00
Schedule of fair value of our derivative instruments	The fair values of derivative instruments in the Company’s consolidated balance sheets were as follows ( in thousands ): Asset Derivative Instruments Liability Derivative Instruments As of June 30, 2018 As of December 31, 2017 As of June 30, 2018 As of December 31, 2017 Balance Fair Value Balance Fair Value Balance Fair Value Balance Fair Value Derivative financial instruments Current $ - Current $ - Current $ 36,793 Current $ 32,567 Non- - Non- - Non- 6,305 Non- - Total gross derivative financial instruments subject to enforceable master netting agreement - - 43,098 32,567 Derivative financial instruments Current - Current - Current - Current - Non- - Non- - Non- - Non- - Gross amounts offset in Balance Sheets - - - - Net amounts presented in Balance Sheets Current - Current - Current 36,793 Current 32,567 Non- - Non- - Non- 6,305 Non- - $ - $ - $ 43,098 $ 32,567
Schedule of the components of the gain (loss) on derivative instruments	The following table presents information about the components of the (loss) gain on derivative financial instruments ( in thousands ). Three Months Ended June 30, Six Months Ended June 30, (Loss) gain on derivative financial instruments 2018 2017 2018 2017 Cash settlements $ (15,301) $ 2,351 $ (28,348) $ 2,640 Non-cash gain in fair value (10,744) 7,061 (10,531) 10,470 Total (loss) gain on derivative financial instruments $ (26,045) $ 9,412 $ (38,879) $ 13,110

Supplemental Cash Flow Inform27

Supplemental Cash Flow Information (Tables)	6 Months Ended
Supplemental Cash Flow Information (Tables)	Jun. 30, 2018
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	The following table presents supplemental cash flow information ( in thousands ): Six Months Ended June 30, 2018 2017 Cash paid for interest $ 4,626 $ 7,484
Schedule of non-cash investing and financing activities	Six Months Ended June 30, 2018 2017 Cash paid for interest $ 4,626 $ 7,484 The following table presents non-cash investing and financing activities ( in thousands ): Six Months Ended June 30, June 30, June 30, 2018 2017 Changes in capital expenditures and accrued liabilities or accounts payable $ - $ (164) Changes in asset retirement obligations 28,999 (133,039) Changes in other property and equipment - (455)
Schedule of reconciliation of cash, cash equivalents and restricted cash	The following table presents the reconciliation of cash, cash equivalents and restricted cash as presented on the consolidated statement of cash flows (in thousands) : As of June 30, December 31, June 30, 2018 2017 2017 Cash and cash equivalents $ 97,900 $ 151,729 $ 178,855 Restricted cash, current 6,432 6,392 6,365 Restricted cash, long term 25,814 25,712 25,637 Total Cash, cash equivalents and restricted cash $ 130,146 $ 183,833 $ 210,857

Loss per Share (Tables)

Loss per Share (Tables)	6 Months Ended
Loss per Share (Tables)	Jun. 30, 2018
Loss per Share
Schedule of basic and diluted earnings (loss) per share	The following table sets forth the calculation of basic and diluted loss per share (“EPS”) ( in thousands, except per share data ): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net loss $ (34,035) $ (26,237) $ (67,090) $ (90,784) Weighted average shares outstanding for basic EPS 33,427 33,237 33,367 33,234 Add dilutive securities - - - - Weighted average shares outstanding for diluted EPS 33,427 33,237 33,367 33,234 Loss per share Basic and Diluted $ (1.02) $ (0.79) $ (2.01) $ (2.73)
Schedule of components of common stock equivalents	Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Warrants 11,393,213 1,447,992 12,508,419 1,238,023 Options 1,066,237 204,896 1,201,495 269,817 RSUs 33,584 79,509 310,788 23,584 PBRSUs 25,963 - 17,664 - 12,518,997 1,732,397 14,038,366 1,531,424

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	6 Months Ended
Fair Value of Financial Instruments (Tables)	Jun. 30, 2018
Fair Value of Financial Instruments
Schedule of the fair value of Level 1 and Level 2 financial instruments	The following table presents the fair value of its Level 2 financial instruments ( in thousands ): Level 2 As of June 30, 2018 As of December 31, 2017 Assets: Oil and Natural Gas Derivatives $ - $ - Liabilities: Oil and Natural Gas Derivatives $ 43,098 $ 32,567
Schedule of details of Level 2 financial instruments	The following table sets forth the outstanding and estimated fair values of its long-term debt instruments which are classified as Level 2 financial instruments ( in thousands ): As of June 30, 2018 As of December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Exit Facility $ 58,447 $ 58,447 $ 73,996 $ 73,996 $ 58,447 $ 58,447 $ 73,996 $ 73,996

Prepayments and Accrued Liabi30

Prepayments and Accrued Liabilities (Tables)	6 Months Ended
Prepayments and Accrued Liabilities (Tables)	Jun. 30, 2018
Prepayments and Accrued Liabilities
Schedule of prepayments and accrued liabilities	Prepayments and other current assets and accrued liabilities consist of the following ( in thousands ): As of June 30, 2018 As of December 31, 2017 Prepaid expenses and other current assets Advances to joint interest partners $ 132 $ 1,381 Insurance 6,645 5,949 Inventory 885 394 Royalty deposit 756 1,021 Other 3,455 12,857 Total prepaid expenses and other current assets $ 11,873 $ 21,602 Accrued liabilities Advances from joint interest partners 253 81 Employee benefits and payroll 4,499 6,791 Interest payable 2,493 185 Accrued hedge payable 5,110 2,491 Undistributed oil and gas proceeds 19,421 20,079 Severance taxes payable 1,375 558 Other 18,960 15,309 Total accrued liabilities $ 52,111 $ 45,494

Organization and Nature of Op31

Organization and Nature of Operations (Details)	6 Months Ended
Organization and Nature of Operations (Details)	Jun. 30, 2018itemft
Oil and natural gas properties
Number of oil fields owned and operated \| item	9
Maximum [Member]
Oil and natural gas properties
Off shore oil and gas properties, Depth of water (in feet) \| ft	1,000

Recent Events (Details)

Recent Events (Details) $ / shares in Units, $ in Millions	Jun. 18, 2018USD ($)$ / sharesshares	Jun. 30, 2018$ / shares	Dec. 31, 2017$ / shares	Dec. 30, 2016$ / shares
Business Acquisition [Line Items]
Common stock, par value		$ 0.01	$ 0.01	$ 0.01
Warrants exercise price		$ 43.66
Threshold affirmative vote, as a percentage	33.33
Second lien note term terminated	10 years
Master services agreement term terminated	10 years
COX \| Merger agreement
Business Acquisition [Line Items]
Common stock, par value	$ 0.01
Cash consideration per share	$ 9.10
Number of warrants issued (in shares) \| shares	2,119,889
Warrants exercise price	$ 43.66
Warrants cash exercise price payable by warrant holder	$ 9.10
Termination fee \| $	$ 8
Out-of-packet expenses maximum reimbursement \| $	$ 2

Summary of Significant Accoun33

Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Revenue (Details)	6 Months Ended
	Jun. 30, 2018
Minimum [Member]
Revenue
Period over which entity receives payment for sales after delivery	1 month
Maximum [Member]
Revenue
Period over which entity receives payment for sales after delivery	3 months

Property and Equipment - Schedu

Property and Equipment - Schedule (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Oil and gas properties
Proved properties	$ 1,372,463	$ 1,307,009
Less: accumulated depreciation, depletion, amortization and impairment	(791,585)	(742,286)
Proved properties, net	580,878	564,723
Unevaluated properties	192,275	200,199
Oil and gas properties, net	773,153	764,922
Other property and equipment	13,936	13,780
Less: accumulated depreciation	(5,667)	(3,660)
Other property and equipment, net	8,269	10,120
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment	$ 781,422	$ 775,042

Property and Equipment - Impair

Property and Equipment - Impairment (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Impairment
Impairment of oil and natural gas properties	$ 40,774

Property and Equipment - Additi

Property and Equipment - Additional information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Property and Equipment
Reduction in unevaluated properties	$ 3.6	$ 7.9
Amortization to evaluated properties	2.2	4.3
Unevaluated properties costs transferred to evaluated properties	1.8	4
Addition related to exploratory drilling costs	$ 0.4	$ 0.4

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Long-Term Debt
Total debt	$ 58,464	$ 74,017
Less: debt issue costs	34	44
Less: current maturities	17	21
Total long-term debt	58,413	73,952
Exit Facility [Member]
Long-Term Debt
Total debt	58,447	73,996
Capital Lease Obligations
Long-Term Debt
Total debt	$ 17	$ 21

Long-Term Debt - Exit Facility

Long-Term Debt - Exit Facility (Details) $ in Thousands	Mar. 29, 2018USD ($)	Dec. 30, 2016item	Jun. 30, 2018USD ($)item	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Long-Term Debt
Payments on long-term debt	$ 10,000			$ 15,556	$ 728
Debt			$ 58,464	$ 58,464		$ 74,017
Exit Facility [Member]
Long-Term Debt
Minimum percentage of total value of the entity's and subsidiary guarantors' proved reserves required to be covered by mortgages to secure debt		90.00%
Number of facilities \| item		2
Minimum Current ratio			1	1
Maximum Leverage ratio			4	4
Leverage ratio, Number of trailing quarters \| item			4
Payments on long-term debt			$ 0
Debt			58,447	$ 58,447		$ 73,996
Letters of credit			$ 201,500	201,500
Exit Term Loan Facility [Member]
Long-Term Debt
Asset coverage ratio threshold to make mandatory payment on exit term loan			1.50
Percentage of aggregate outstanding principal amount to be prepaid if asset coverage ratio is less than threshold		7.50%
Payments on long-term debt			$ 5,500
Amount available for borrowing			12,500	12,500
Maximum available for revolving loans			$ 25,000	$ 25,000
Exit Revolving Credit Facility [Member]
Long-Term Debt
Commitment fee (as a percent)				0.50%
Letter of credit, rate of fees accrual (as a percent)				4.50%
Letter of credit, rate of issuance fee per annum (as a percent)				0.25%
Base Rate [Member] \| Exit Term Loan Facility [Member]
Long-Term Debt
Percentage points added to reference rate (as a percent)				3.50%
Base Rate [Member] \| Exit Revolving Credit Facility [Member]
Long-Term Debt
Percentage points added to reference rate (as a percent)				3.50%
London Interbank Offered Rate (LIBOR) [Member] \| Exit Term Loan Facility [Member]
Long-Term Debt
Percentage points added to reference rate (as a percent)				4.50%
London Interbank Offered Rate (LIBOR) [Member] \| Exit Revolving Credit Facility [Member]
Long-Term Debt
Percentage points added to reference rate (as a percent)				4.50%

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Asset Retirement Obligations
Beginning of period total	$ 664,851
Liabilities incurred	8,761
Liabilities settled	(34,717)
Revisions	20,238
Accretion expense	22,315
End of period total	681,448
Less: current portion	55,952	$ 51,398
Long-term portion	$ 625,496	$ 613,453

Derivative Financial Instrume40

Derivative Financial Instruments - Positions (Details)	1 Months Ended	6 Months Ended
Derivative Financial Instruments - Positions (Details)	Apr. 30, 2018item$ / bbl	Jun. 30, 2018$ / bblbbl
Swap, Remaining contract term April 2018 to December 2018, NYMEX-WTI
Net open crude oil derivative positions
Volumes (MBbls) \| bbl		1,472
Weighted average contract price, Swaps		50.68
Swap, Remaining contract term April 2018 to June 2018, ICE Brent
Net open crude oil derivative positions
Volumes (MBbls) \| bbl		1,095
Weighted average contract price, Swaps		61
Swap, Remaining contract term April 2018 to June 2018, NYMEX-WTI
Net open crude oil derivative positions
Unwound (BPDs) \| item	3,000
Swap, Contract term January 2019 to December 2019, Ice Brent
Net open crude oil derivative positions
Added (BPDs) \| item	3,000
Weighted average contract price, Swaps	61
Swap, Remaining contract term April 2018 to June 2018, ICE Brent, Added April 2018
Net open crude oil derivative positions
Added (BPDs) \| item	3,000
Average floor price	60
Average ceiling price	82

Derivative Financial Instrume41

Derivative Financial Instruments - Fair Values (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Liability Derivative Instruments
Gross derivative financial instruments subject to enforceable master netting agreement	$ 43,098	$ 32,567
Net amounts presented in Balance Sheets	43,098	32,567
Current liabilities [Member]
Liability Derivative Instruments
Gross derivative financial instruments subject to enforceable master netting agreement	36,793	32,567
Net amounts presented in Balance Sheets	36,793	$ 32,567
Noncurrent Liabilities [Member]
Liability Derivative Instruments
Gross derivative financial instruments subject to enforceable master netting agreement	6,305
Net amounts presented in Balance Sheets	$ 6,305

Derivative Financial Instrume42

Derivative Financial Instruments - (Loss) Gain (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Financial Instruments
Cash settlements	$ (15,301)	$ 2,351	$ (28,348)	$ 2,640
Non-cash gain in fair value	(10,744)	7,061	(10,531)	10,470
Total (loss) gain on derivative financial instruments	(26,045)	$ 9,412	(38,879)	$ 13,110
Deposits for collateral with counterparties	$ 0		$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Cash paid for income taxes	$ 0	$ 0
Effective income tax rate (benefit) (as a percent)		0.00%
Increase in valuation allowance	5.9	$ 12.3
Valuation allowance	$ 318.6	318.6		$ 306.2
Change in deferred tax assets related to Tax Cuts and Jobs Act of 2017		0
Change in valuation allowance related to Tax Cuts and Jobs Act of 2017		$ 0
Forecast
Income Taxes
Cash paid for income taxes			$ 0
Effective income tax rate (benefit) (as a percent)			0.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	3 Months Ended	6 Months Ended
Stockholders' Equity (Details) - $ / shares	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 30, 2016
Stockholders' Equity
Capital stock, shares authorized				110,000,000
Common stock, shares authorized	100,000,000	100,000,000	100,000,000	100,000,000
Common stock, par value	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000	10,000,000
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock issued upon vesting of restricted stock units (in shares)	128,085	141,600
Common stock, shares outstanding	33,396,563	33,396,563	33,254,963
stock options (in shares)	285,105	285,105
Warrants outstanding (in shares)	2,119,889	2,119,889
Options \| 2016 Long Term Incentive Plan
Stockholders' Equity
stock options (in shares)	285,105	285,105

Supplemental Cash Flow Inform45

Supplemental Cash Flow Information - Supplemental (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Supplemental Cash Flow Information
Cash paid for interest		$ 4,626	$ 7,484
Cash paid for income taxes	$ 0	$ 0

Supplemental Cash Flow Inform46

Supplemental Cash Flow Information - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Non-cash investing and financing activities
Changes in capital expenditures and accrued liabilities or accounts payable		$ (164)
Changes in asset retirement obligations	$ 28,999	(133,039)
Changes in other property and equipment		$ (455)

Supplemental Cash Flow Inform47

Supplemental Cash Flow Information - Reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Supplemental Cash Flow Information
Cash and cash equivalents	$ 97,900	$ 151,729	$ 178,855
Restricted cash, current	6,432	6,392	6,365
Restricted cash, long term	25,814	25,712	25,637
Total Cash, cash equivalents and restricted cash	$ 130,146	$ 183,833	$ 210,857	$ 223,288

Employee Benefit Plans - 2016 P

Employee Benefit Plans - 2016 Plan (Details) - 2016 Long Term Incentive Plan - shares	Apr. 29, 2017	Dec. 30, 2016
Employee Benefit Plans
Number of shares reserved		1,859,552
Percentage of equity reserved under plan		5.00%
Percentage of total new equity that must be allocated		3.00%
Maximum period in which percentage of total new equity must be allocated		120 days
Percentage of total new equity allocated	3.00%

Employee Benefit Plans - 2018 P

Employee Benefit Plans - 2018 Plan (Details) - 2018 Long Term Incentive Plan - shares	Jun. 30, 2018	Apr. 11, 2018
Employee Benefit Plans
Number of shares of common stock available for awards		1,860,000
Number of shares remaining available for award	1,317,083

Employee Benefit Plans - Stock

Employee Benefit Plans - Stock options (Details) - Options - 2016 Long Term Incentive Plan	6 Months Ended
	Jun. 30, 2018
Employee Benefit Plans
Share-based award, expiration period	10 years
Share-based award, vesting period	3 years

Employee Benefit Plans - Restri

Employee Benefit Plans - Restricted stock units (Details) - RSUs - 2016 Long Term Incentive Plan $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2018USD ($)$ / sharesshares
Employee Benefit Plans
Share-based award, vesting period		3 years
Number of shares for which each unit provides right to receive	1	1
Restricted Stock Units
Granted (in shares)	475,886	1,272,853
Outstanding at end of period (in shares)	1,580,223	1,580,223
Weighted average share price (in dollars per share) \| $ / shares	$ 6.92	$ 6.42
Unrecognized compensation expense \| $	$ 10.6	$ 10.6

Employee Benefit Plans - Stoc52

Employee Benefit Plans - Stock option valuation assumptions (Details) $ in Millions	Jun. 30, 2018USD ($)shares
Employee Benefit Plans
Unvested stock options (in shares)	285,105
Options \| 2016 Long Term Incentive Plan
Employee Benefit Plans
Unvested stock options (in shares)	285,105
Unrecognized compensation expense (in dollars) \| $	$ 0.9

Employee Benefit Plans - Perfor

Employee Benefit Plans - Performance-Based Restricted stock units (Details) - 2018 Long Term Incentive Plan - RSUs - USD ($) $ in Millions	Jun. 07, 2018	Jun. 30, 2018
Restricted Stock Units
Restricted stock units awarded (in shares)	262,500
Company's stock maximum award of target opportunity for performance level percent	150.00%
Company's stock minimum award of target opportunity for performance level percent	0.00%
Unvested performance based units		262,500
Unrecognized compensation expense		$ 2.3

Loss per Share - EPS (Details)

Loss per Share - EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Loss per Share
Net loss	$ (34,035)	$ (26,237)	$ (67,090)	$ (90,784)
Weighted average shares outstanding for basic EPS	33,427	33,237	33,367	33,234
Weighted average shares outstanding for diluted EPS	33,427	33,237	33,367	33,234
Loss per share, Basic and Diluted (in dollars per share)	$ (1.02)	$ (0.79)	$ (2.01)	$ (2.73)

Loss per Share - Other (Details

Loss per Share - Other (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Loss per Share - Other (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other disclosures
Net loss allocated to participating securities (in dollars)	$ 0	$ 0	$ 0	$ 0

Loss per Share - Common stock e

Loss per Share - Common stock equivalents (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	12,518,997	1,732,397	14,038,366	1,531,424
Average Stock Price (in shares)	6.85	25.94	6.33	27.56
Exercise price of warrant (in dollars per share)	$ 43.66		$ 43.66
weighted average exercise price for EGC’s outstanding stock options	$ 28.90		$ 28.90
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	11,393,213	1,447,992	12,508,419	1,238,023
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1,066,237	204,896	1,201,495	269,817
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	33,584	79,509	310,788	23,584
PBRSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	25,963		17,664

Commitments and Contingencies -

Commitments and Contingencies - Letters of Credit and Performance Bonds (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2015
Letters of Credit and Performance Bonds
Performance bonds outstanding	$ 328.9
Cash collateral	52.3	$ 0.3
Exit Facility [Member]
Letters of Credit and Performance Bonds
Letters of credit	201.5
Exit Facility [Member] \| ExxonMobil
Letters of Credit and Performance Bonds
Letters of credit	200
Performance Bond, Lease and area bonds
Letters of Credit and Performance Bonds
Performance bonds outstanding	177.2
Performance Bonds, Wells and facilities
Letters of Credit and Performance Bonds
Performance bonds outstanding	$ 151.7

Commitments and Contingencies58

Commitments and Contingencies - Drilling Rig Commitments (Details) - Drilling Rig Contracts $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)contract
Drilling Rig Commitments
Drilling rig commitments \| $	$ 8.4
Number of contracts \| contract	3

Commitments and Contingencies59

Commitments and Contingencies - Other (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2015
Other
Cash Collateral	$ 52.3	$ 0.3
Bonding Requirements [Member]
Other
Restricted cash	25.8
Future Plugging, Abandonment and Other Decommissioning [Member]
Other
Restricted cash	$ 6.1

Fair Value of Financial Instr60

Fair Value of Financial Instruments - Dividend Yield (Details)	6 Months Ended
	Jun. 30, 2018
Black-Scholes option pricing model assumptions:
Dividend yield (as a percent)	0.00%

Fair Value of Financial Instr61

Fair Value of Financial Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Liabilities:
Oil and Natural Gas Derivatives, Liabilities	$ 43,098	$ 32,567
Fair Value, Inputs, Level 2 [Member]
Liabilities:
Oil and Natural Gas Derivatives, Liabilities	$ 43,098	$ 32,567

Fair Value of Financial Instr62

Fair Value of Financial Instruments - Long-term debt instruments (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Carrying Value [Member]
Long-Term Debt
Long-term debt instruments	$ 58,447	$ 73,996
Estimated of Fair Value [Member]
Long-Term Debt
Long-term debt instruments	58,447	73,996
Exit Facility [Member] \| Carrying Value [Member]
Long-Term Debt
Long-term debt instruments	58,447	73,996
Exit Facility [Member] \| Estimated of Fair Value [Member]
Long-Term Debt
Long-term debt instruments	$ 58,447	$ 73,996

Prepayments and Accrued Liabi63

Prepayments and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Prepaid expenses and other current assets
Advances to joint interest partners	$ 132	$ 1,381
Insurance	6,645	5,949
Inventory	885	394
Royalty deposit	756	1,021
Other	3,455	12,857
Total prepaid expenses and other current assets	11,873	21,602
Accrued liabilities
Advances from joint interest partners	253	81
Employee benefits and payroll	4,499	6,791
Interest payable	2,493	185
Accrued hedge payable	5,110	2,491
Undistributed oil and gas proceeds	19,421	20,079
Severance taxes payable	1,375	558
Other	18,960	15,309
Total accrued liabilities	$ 52,111	$ 45,494